PNW · 10-Q · 2026Q3 · Full report

Liquidity and Debt Position

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 80 · Surprise 74 · In source text

As of September 30, 2026, APS’s common equity ratio under the ACC order was 51%, with approximately $9.5 billion of shareholder equity and $18.7 billion of total capitalization. APS’s long-term debt limit was $9.5 billion, and on July 31, 2026, it applied to the ACC to raise that limit to $12 billion. Pinnacle West and APS had debt-to-capitalization ratios of approximately 61% and 50%, respectively, against a 65% covenant maximum. Both companies maintain committed revolving credit facilities that mature in 2031, and management stated it believed available liquidity was sufficient to respond to a potential ratings downgrade.

Key facts

• On December 17, 2024, the ACC approved a limit on yearly equity infusions to APS equal to 2.5% of APS’s total assets each calendar year on a three-year rolling average basis, subject to APS’s equity ratio remaining below the most recently approved rate case capital structure plus 50 basis points. source
• On July 31, 2026, APS applied to the ACC to increase its long-term debt limit from $9.5 billion to $12 billion; the outcome was uncertain. source
• As of September 30, 2026, APS’s common equity ratio under the ACC order was 51%, with approximately $9.5 billion of shareholder equity and approximately $18.7 billion of total capitalization. source
• Pinnacle West’s financing cash flow change included a $426 million net decrease in short-term borrowings, $17 million lower net proceeds from common stock issuances, and $14 million higher dividend payments; partly offset by $200 million lower long-term debt repayments, the absence of a prior-year $199 million Palo Verde sale leaseback noncontrolling-interest acquisition payment, and $40 million higher long-term debt issuance. source
• Pinnacle West’s consolidated operating cash flow for the first nine months of 2026 was $1,352 million, compared with $1,328 million in 2025, an increase of $24 million. source
• Pinnacle West expects minimum required cash contributions to its pension plan to be zero for the next three years. source
• Pinnacle West did not expect to make a voluntary pension contribution in 2026 and was evaluating whether to make voluntary contributions in 2027 and 2028. source
• Pinnacle West made no contributions to its other postretirement benefit plan in 2026 and did not expect contributions in 2026, 2027, or 2028. source

Impact estimates